Amundi S A : - Results for the first half and the second quarter of 2016

Amundi's Board of Directors, chaired by Xavier Musca, met on 29 July 2016 to review the financial statements for the first half and second quarter of 20165.

Commenting on these results, Yves Perrier, CEO, said:

"Amundi's high level of activity and results in the first half of 2016, in a tough market environment, confirms the strength of its business model and excellent operating efficiency, as well as the value of the strategy presented at the time of its IPO."

In a tough market environment, Amundi reached one year ahead of schedule the 1 trillion euro AUM target that was announced beginning of 2014. This objective was reached almost exclusively through organic growth6.

The profit for the first half is the best since Amundi was created thanks to high net inflows coupled with excellent operating efficiency.

1 Assets under management (AUM) and net inflows include 100% of the assets under management and net inflows of joint ventures, excluding Wafa in Morocco, for which assets under management are reported on a proportional consolidation basis.

2 Assets under management and assets sold at 30 June 2016: €1,003.8 billion.

3 MLT assets excluding Treasury products: equities, fixed income, multi assets, structured, real assets and alternative.

4 Net tangible assets: Equity, Group share net of goodwill and intangible assets. For the principles used to calculate free capital, please see the technical appendix at the end of this press release.

5 The limited review on the interim condensed consolidated financial statements for the first half of 2016 is being carried out.

6 Under Crédit Agricole S.A.'s 2014 Medium-Term Plan, projected growth was expected to be two-thirds external and one-third organic.

The first half was marked by an environment of highly volatile markets, under the influence of increased economic and geopolitical uncertainties. At the end of the period this was amplified by the outcome of the UK referendum on the European Union.

European equity markets fell on average7 by -13% compared to the first half of 2015, following a particularly bumpy trajectory: the Stoxx 600 lost -7% in the first quarter, then gained +2% in the second quarter until 23 June, and then promptly lost -5% between that date and the end of the quarter.

The decline in interest rates on the bond markets was more constant over the period: -80bp for 10-year OAT including -20bp over the second quarter, -50bp for the 10-year Bund, most of which was lost in the first quarter. The average for the 3-month Euribor, which had fallen into negative territory in the second half of 2015, kept dropping, reaching -0.3% at the end of the first half of 2016.

This volatility encouraged mounting risk aversion, which negatively impacted the asset management business over the period.

The market effect on Amundi's assets under management was negative by -€11.6bn in the first quarter and positive by +€13.6bn in the second quarter, resulting in a slightly positive +€2.0bn over the first half.

Amundi crossed the €1tn threshold for assets under management8, a target which had been set for the end of 2016 in Crédit Agricole S.A.'s Medium-Term Plan presented in March 2014. It should also be noted that growth over the period was almost entirely organic9.

Net inflows for the first half were focused on medium- to long-term assets11: +€17.2bn, i.e. 4% annualised of AUM at the beginning of the period, thanks to the positive contribution from all asset classes in this category, particularly equity, which brought in +€5.7bn, in all regions, for both active and passive management, as well as fixed income (+€6.3bn) and multi-asset (+€2.7bn).

Noteworthy developments include, in real assets, the ongoing strong business volume in real estate, with

+€1.7bn in inflows over the period, and high inflows in volatility products, which also brought in +€1.7bn over the period. Amundi is a leader in this asset class, which has sparked renewed investor interest thanks to the return of volatility on the markets. Assets under management at end-June 2016 totalled €4.1bn.

7 Calculated as the change in the average closing price in the first half of 2016 versus the first half of 2015: Stoxx 600 -13.3%, EuroStoxx -12.6%, CAC 40 -11.1%, SBF 120 -10.6%.

8 €1,003.8bn at 30 June 2016, +5.2% compared to 30 June 2015 and +1.9% compared to 31 December 2015

9 Under Crédit Agricole S.A.'s Medium-Term Plan, projected growth was expected to be two-thirds external and one-third organic. In fact, only 5% of growth in assets under management over the period came from acquisitions.

10 Annualised.

11 See Table - Assets under management and inflows by asset class.

Institutionals are also performing well: net inflows reached +€6.7bn over the period. Mandates from CA and SG insurance companies contributed half of these inflows, i.e. +€3.4bn. All of the sub-segments posted net positive inflows, including for medium- to long-term assets, except for corporates that, as with the Retail segment, recorded outflows for Treasury products, i.e. -€3.3bn over the period.

• In terms of client segments, Retail: +€8.3bn

• In terms of asset classes, Medium- to long-term assets: +€10.3bn14, with a particularly strong contribution from equities (+€3.4bn) ;

• and in terms of geographical areas, activities outside France: +€5.9bn

Treasury products experienced heavy outflows in the second quarter (-€7.3bn12), which offset first-quarter inflows. However, inflows recovered in July. Inflows for this asset class remain volatile, but are growing.

This increase is attributable to strong operating performance, with very resilient revenues and additional improvements to operating efficiency.

• revenues were down slightly by -1.3%; net management fees were stable with respect to the first half of 2015, owing to resilient margins. Performance fees also proved resilient: at €53m they were nearly unchanged from the first half of 2015. At €35m, only financial income is down, falling by

  -27% compared to the first half of 2015.

• the decrease in operating expenses at constant scope and exchange rates was -2.3% compared to the first half of 2015; this decline is mainly the result of adjusting variable compensation to match changes in revenue; investment in business development was maintained, particularly international recruitment.

12 See Table - Assets under management and inflows by client segment

13 See Table - Assets under management and inflows by region

14 After €2.5bn of net inflows on treasury products in Q1 was restated as fixed income products

At €403m, gross operating income (GOI) was almost the same as in the first half of 2015. The

Tangible equity15 totalled €3.2bn, almost unchanged compared to end-2015, as capital resulting from accrual of net income for the period (+€278m) was more than offset by the 2015 dividend payment (-€343m). Net financial debt is still nil and free capital16, after taking regulatory requirements into account and deducting non-money-market seed money and investments, remains at €1.5bn.

On 23 May, Amundi announced that it had signed an agreement to acquire KBI, a fast-growing asset management firm based in Ireland that specialises in global equity (€8bn in assets under management). This acquisition, which is expected to be finalised in the third quarter 2016, offers major potential synergies thanks to the complementary nature of KBI and Amundi's client bases. It will also meet the acquisition criteria set during the IPO, particularly a 10% return on investment in three years.

Amundi's financial information for the first half and second quarter 2016 consists of this press release and the related presentation, available on our website http://about.amundi.com.

15 Net of goodwill and other intangible assets

16 Free capital: for the principles used to calculate free capital, please see the technical appendix at the end of this press release.

17 Finalisation of the transaction expected in the third quarter 2016, no effect on the 30 June 2016 interim financial statements